SIA's Q3 earnings soar 61% to $286m

All of SIA's business segments - passenger, cargo and engineering services - posted higher revenues.
All of SIA's business segments - passenger, cargo and engineering services - posted higher revenues.PHOTO: REUTERS

Higher passenger and cargo revenues and the absence of a write-down made last year boosted third-quarter earnings at Singapore Airlines (SIA).
 

Net profit jumped 61.5 per cent to $286.1 million for the three months to Dec 31, while revenue increased 6 per cent to $4.08 billion, it reported yesterday.

The bottom line was boosted by the absence of the $79 million write-down of the Tigerair brand and trademark that was made in the same period last year.

All the airline's business segments - passenger, cargo and engineering services - posted higher revenues.

SIA said: "Despite a stabilisation in yields in recent months, pressure on yields remains as competitors mount significant capacity in key markets with aggressive pricing. These challenging market conditions have been exacerbated by recent fuel price movements."

It added that fuel prices have been trending higher, with volatility expected in the months ahead.

  • AT A GLANCE

    REVENUE: $4.08 billion (+6%)

    NET PROFIT: $286.1 million (+61.5%)

Earnings per share climbed to 24.2 cents, up from 15 cents a year earlier, while net asset value per share was $11.87, up from $11.07 as of March 31.

Expenditure edged up 5.4 per cent to $3.75 billion, partly due to higher fuel costs. But operating profit still rose from $292.9 million a year ago to $329.4 million, in line with the increase in revenue.

All the main companies in the group turned in an operating profit in the third quarter, with the parent airline reporting a $4 million increase to $155 million. Revenue at the parent airline expanded, due to growth in passenger carriage, but was partly offset by a 1 per cent dip in yield.

Operating profit at SilkAir fell $11 million to $19 million as higher expenditure outstripped revenue gains. Yield also took a 12.3 per cent tumble.

Meanwhile, Scoot - which has been merged with Tigerair - recorded a $14 million gain in operating profit at $43 million, as both passenger carriage and yield increased.

SIA Cargo's operating profit shot up from $53 million to $88 million, due to a 4.4 per cent growth in freight carriage and a 12.1 per cent rebound in cargo yield.

SIA has embarked on a three-year transformation programme to boost revenues and trim costs.

It said the programme is "well on track" and is "already bearing fruit in terms of enhancement of customer experience, revenue generation and improvements in operational efficiency".

A version of this article appeared in the print edition of The Straits Times on February 14, 2018, with the headline 'SIA's Q3 earnings soar 61% to $286m'. Print Edition | Subscribe